Financial Reporting Investments Ineffective, Survey Finds

Jun 1, 2012

A large number of companies are investing in solutions to make the financial reporting process easier, but a new survey indicates they are doing so in an inefficient way, which could be affecting their overall business decision making strategy.

Financial reporting investments have been made without a clear strategy or overarching method in mind, according to the survey from business operations provider Oracle. This ad hoc structuring typically leaves businesses with ineffective solutions, which can reflect a lack of confidence in financial reports.

Nearly half of companies surveyed for the report - 47 percent - said they had made investments in at least one area of financial reporting, whether it was the closing, reporting or filing process. The survey also found that spreadsheets and email are being largely used to track financial reporting metrics. This could be an indication that the investments have not paid off.

Eighty-four percent of financial managers surveyed said they have difficulty controlling the financial data during the reporting process. If organizations are going to have any chance of making their investments work for them, there has to be a clear vision from the start regarding the ways in which those investments can and should make day-to-day operations easier, and an effective implementation plan to get accountants and financial staff on the same page quickly.